Internet providers that won FCC grants try to escape broadband commitments

A group of Internet service providers that won government grants are asking the Federal Communication Commission for more money or an "amnesty window" in which they could give up grants without penalty. The ISPs were awarded grants to build broadband networks from the FCC's Rural Digital Opportunity Fund (RDOF), which selected funding recipients in December 2020. A group calling itself the "Coalition of RDOF Winners" has been meeting with FCC officials about their requests for more money or an amnesty window. The group says broadband construction costs have soared since the grants were announced. They asked for extra money, quicker payments, relief from letter of credit requirements, or an amnesty window "that allows RDOF winners to relinquish all or part of their RDOF winning areas without forfeitures or other penalties if the Commission chooses not to make supplemental funds available or if the amount of supplemental funds the Commission does make available does not cover an RDOF Winner's costs that exceed reasonable inflation," a July 31 filing said. A different group of ISPs urged the FCC to reject the request, saying that telcos that win grants by pledging to build networks at a low cost are "gaming" the system by seeking more money afterward. So far, the FCC leadership seems reluctant to provide extra funding. The commission could issue fines to ISPs that default on grants—the FCC recently proposed $8.8 million in fines against 22 RDOF applicants for defaults.